TMI Blog2011 (9) TMI 1059X X X X Extracts X X X X X X X X Extracts X X X X ..... ets desiring to joint Merchant Navy and the said coaching classes cannot be treated as charitable one. Moreover, the assessee’s activity is commercially tainted and nothing is placed before us to show that at what concessional rates the courses are being conducted. In our opinion, the Ld. DI (Exempt) has rightly rejected the application of the assessee. We find no merits in the appeal filed by the assessee. - ITA No. 4788/Mum/2009 - - - Dated:- 28-9-2011 - P. M. Jagtap (Accountant Member) And R. S. Padvekar (Judicial Member) For the Petitioner : Mehul Shah For the Respondent : Pavan Ved ORDER R. S. Padvekar (Judicial Member) In this appeal the assessee has challenged the impugned order of the Ld. Director of Income-tax (Exemption) (In short DI (Exmpt.) Mumbai passed u/s.12AA r.w.s. 12A of the Income-tax Act, 1961 dated 30.06.2009, denying the registration to the assessee as a charitable institution. The assessee has taken the following ground:- 1. On the facts and in the circumstances of the case, and in law, learned Director of Income-tax (Exemption) erred in refusing registration of the trust under section 12AA contending that activities of educati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pt.) the assessee is merely conducting the coaching classes and there is commerciality in it s activity. The Ld. DI (Exmpt.) referred to the decision of the Hon ble Supreme Court in the case of Sole Trustee, Loka Shikshana Trust vs. CIT, Mysore 101 ITR 234 and rejected/dismissed the application of the assessee for registration. Now, the assessee is in appeal before us. 4. We have heard rival submissions of the parties and perused the records. The assessee has also filed the paper book which is placed on record. The Ld. Counsel explained the nature of the activity carried out by the assessee. The main plea of the Ld. Counsel for the assessee is that the assessee is a Trust and the training is imparted to the Merchant Navy cadets under the guidance of the DG Shipping, Govt. of India. He referred to the different notifications and guidelines issued by the DG Shipping. He also distinguished the decision of the Hon ble Supreme Court in the case of Sole Trustee (supra) and submits that the facts in the said case are not applicable to the assessee s case. The Ld. Counsel also tried to impress us by stating that the assessee has no much more surplus from those activity and the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o such purposes outside India, and (ii) for charitable or religious purposes, created before the 1st day of April, 1952, to the extent to which such income is applied to such purposes outside India: Provided that the Board, by general or special order, has directed in either case that it shall not be included in the total income of the person in receipt of such income; [(d) income in the form of voluntary contributions made with a specific direction that they shall form part of the corpus of the trust or institution.] [Explanation.-For the purposes of clauses (a) and (b),- (1) in computing the [fifteen] per cent of the income which may be accumulated or set apart, any such voluntary contributions as are referred to in section 12 shall be deemed to be part of the income; (2) if, in the previous year, the income applied to charitable or religious purposes in India falls short of eighty-five per cent of the income derived during that year from property held under trust, or, as the case may be, held under trust in part, by any amount- (i) for the reason that the whole or any part of the income has not been received during that year, or (ii) for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal gain arising from the transfer shall be deemed to have been applied to charitable or religious purposes to the extent specified hereunder, namely:- (i) where the whole of the net consideration is utilised in acquiring the new capital asset, the whole of the appropriate fraction of such capital gain; (ii) in any other case, so much of the appropriate fraction of the capital gain as is equal to the amount, if any, by which the appropriate fraction of the amount utilised for acquiring the new asset exceeds the appropriate fraction of the cost of the transferred asset. Explanation.-In this sub-section,- (i) appropriate fraction means the fraction which represents the extent to which the income derived from the capital asset transferred was immediately before such transfer applicable to charitable or religious purposes; (ii) cost of the transferred asset means the aggregate of the cost of acquisition (as ascertained for the purposes of sections 48 and 49) of the capital asset which is the subject of the transfer and the cost of any improvement thereto within the meaning assigned to that expression in sub-clause (b) of clause (1) of section 55; (iii) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t much revealed realities and mysteries of life. All this in a way is education in the great school of life. But that is not the sense in which the word education is used in clause (15) of section 2. What education connotes in that clause is the process of training and developing the knowledge, skill, mind and character of students by normal schooling. 8. So far the present assessee is concerned, though it is claimed that education is imparted but, in our opinion, as per material on record, it is just a coaching class and cannot be equated with the word education as contemplated in sec. 2(15) of the Act, thereby, it can be said that the assessee s activity is covered into the charitable purpose. Moreover, though it is argued that there is no commerciality but, we find that the entire coaching to the cadets is imparted only on the commercial basis. How much surplus is with the assessee-trust is not the decisive but the entire foundation of the exemption is based on objects and activities of the Trust / Institution. It is true that, in the Trust-Deed the assessee has shown charitable object in very colourful manner but as per the evidence on record the said objects are only ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
